Potential Trade Setup in AMD

Would just like to flag this name.

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I know we have one live semiconductor trade already, so over-allocating to the same group is a risk to take note of in regards to position sizing. However, I wanted to flag this potential long setup in AMD.

AMD

Down in four straight sessions and five of the last six, AMD is struggling for upside. It lags its “big brother” NVDA, as it should given where it is in the AI race.

In any regard, the stock has traded pretty well until this recent skid.

Keep a close eye on the $109 area. That marks the 10-week moving average, as well as the gap-fill. If there’s heavy weakness today, we could see an overshoot down to the 50-day.

For now though, a dip down to the $109 to $110 area — ideally I’d like to see that gap filled — and a reclaim of yesterday’s low could get a decent bounce going. Ideally, I’d like to trim in the $117 to $119 area.

Position Size: I like a half position here. I want the ability to add to the position at the 50-day and Q1 high near $102.50. Below $100 and the position is clearly not working. For those that don’t want to add, $105 to $106 is a reasonable stop, with the idea being that we would then re-engage in the $102-$102.50 area.

Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.

Remember: Not all setups will trigger. Not all setups will be profitable. Not all setups should be taken. These are simply the setups that I have put together for years on my own and what I watch as part of my own “game plan” coming into each day. Good luck!